A Firm's Supply Curve Is Upward Sloping Because

question 41

Multiple Choice

A firm's supply curve is upward sloping because:

• A)the expansion of production necessitates the use of qualitatively inferior techniques.
• B)mass production economies are associated with larger levels of output.
• C)consumers envision a positive relationship between price and quality.
• D)beyond some point the production costs of additional units of output will rise.

---

Definitions:

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Demand

The desire to purchase goods or services at certain prices, reflecting how much of a product consumers are willing to buy at various price points.

Cost Data

Information regarding the expenses incurred in producing a product or offering a service.

Budweiser

A popular brand of beer produced by Anheuser-Busch, known for its widespread global presence and distinctive marketing campaigns.